Shemaroo Entertainment Limited has informed the Exchange regarding Investor Presentation
Ref No.: SEL / Reg. 30 - LODR/May-2019 /01
May 27, 2019
The Secretary,
National Stock Exchange of India Limited
Exchange Plaza,
Bandra-Kurla Complex
Bandra (E), Mumbai-400 051.
NSE Symbol: SHEMAROO
Dear Sir/Madam,
The Secretary,
BSE Limited
Phiroze Jeejeebhoy Towers
Dalal Street,
Mumbai - 400 023.
Scrip Code: 538685
Re: SHEMAROO ENTERTAINM ENT LIMITED - ISIN: INE363M01019
Sub: Investor Presentation
Please find enclosed herewith Investor Presentation of Shemaroo Entertainment Limited for
your information and records.
The same is also disseminated on the website of the Company l.e. www.shemarooent.com
Thanking you,
Yours faithfully, For Shemaroo Entertainment Limited
Dipesh U. Gosar
Company Secretary & Compliance Officer
ICSI Membership No. A23755
SHEMAROO ENTE RTA INMENT LIMITED Shemaroo House, Plot No. 18, Marol Co - Op. Industrial Estat e, Off Andh eri Kurla Road, Andheri (E), Mumbai - 400 059. Tel. : +91 - 22 4031 9911 I Fax: +91 - 22 285 1 9770 I Email : shemaroo@shemaroo.co m shemarooen l.c om I CIN: L67 190MH2005PLC158288
1
Investor Presentation Shemaroo Entertainment Limited MAY 2019
2
ABOUT SHEMAROO
3
At a Glance
Over 55 years experience as a Household Media Brand
One of the largest content houses with 3700+ content library
Offering content to most Bollywood services across leading platforms
Offering content across Bollywood, Devotional, Regional, Comedy, Kids, Health & Lifestyle, etc.
Strong understanding of Consumer's Entertainment Needs
Strong content offerings in multiple countries across the globe
REVENUE FY19 INR 5,696 Mn
EBITDA FY19 INR 1,596 Mn
PAT FY19 INR 830 Mn
NETWORTH FY19 INR 5,717 Mn
5 Year CAGR 16.45%
5 Year CAGR 19.42%
5 Year CAGR 25.00%
5 Year CAGR 26.79%
4
Overview
• Founded in 1962 as a book circulating library, today Shemaroo Entertainment Limited (Shemaroo) is a leading Indian content
power house with a global reach, headquartered out of Mumbai and employs over 750 people.
• Shemaroo is a pioneer in content aggregation and distribution in India and globally with offerings spread across Television,
Mobile, Internet, OTT, etc.
•
Identifying that movies have the longest shelf life for television and other media content, Shemaroo pioneered the movie library syndication business by acquiring movie titles from producers and distributing it to broadcasters and other media platforms.
• Shemaroo has grown multifold over the years, developing excellent relationships across the media industry value chain, to
become one of the largest organised players in a fragmented industry.
• The company’s digital business contribution has grown from less than 10% in FY14 to over 30% in FY19.
Total Revenue (INR Mn) and EBITDA %
FY19 Revenue Distribution (INR Mn)
27.2%
27.1%
24.8%
30.0%
30.5%
635
373
923
29.3% 28.01%
1,305
1,718
175
1,976
246
2,387
2,861
3,113
3,332
3,586
3,960
FY13
FY14
FY15
FY16
FY17
FY18
FY19
Traditional
Digital
EBITDA Margin (%)
Digital media 30%
Traditional Media 70%
5 Key Milestones
Home Video Distribution started
Digital Post production started
Evolved into a content house by acquiring perpetual rights
Commenced distributing content over digital Media platforms like
YouTube
Completed 50 years
Entered Limca Book of Records for a digital campaign on Twitter
1962
1987
1993
2001
2003
2005
2008
2009
2011
2012
2014
2017
2018
Started book circulating library in Mumbai
One of the first to enter Broadcast Syndication
Entered Overseas markets for distribution
Started content aggregation and distribution for MVAS platforms
Achieved a total of 600 perpetual right titles
Got listed on BSE and NSE
Refreshed the brand identity
6
Awards & Accolades
Abby – Gold – Best Use Of Social Media
Filmi Gaane Antakshari
Adgully Digixx 2018 – Video – Media Brand (2017-18)
YouTube Diamond play button for YouTube channel
Kuch Kisse Kuch Kahaniyan
Shemaroo Filmi Gaane
Gold At The PromaxBDA India Awards 2018 In The Category For Best Copywriting In Regional Language
Shemaroo Entertainment
IAMAI Awards, CMO Asia – Best Use Of Social Media
Filmi Gaane Antakshari
Licensor of The Year - Bollywood award at the India Licensing Expo 2018
Yedaz
7 Experienced Leadership
Buddhichand Maroo - Chairman - He is founder of Shemaroo Entertainment Limited and has been associated with the company since 1962. He started the business with a book library in 1962 and gradually transformed it into a well-diversified corporate in the Media and Entertainment Sector. He has an experience of approximately 56 years, out of which, he has around 35 years of experience in the Media and Entertainment Industry
Raman Maroo - Managing Director - He has an experience of approximately 44 years, out of which he has spent around 35 years in the Media and Entertainment Industry. He has been instrumental in the Group‘s expansion into television rights syndication as well as transformation of Shemaroo into an established filmed entertainment content house. He has always remained the driving force in the Company, taking it into new directions.
Atul Maru - Joint Managing Director - He has around 38 years of experience in the Media and Entertainment industry. He has managed the transition of the Company from VHS days to today’s multi-platform operations. He has been actively involved in the operations of the Company and has spearheaded various initiatives including the home video division of our Company
Hiren Gada – CEO & CFO - He has been at the helm of driving the corporate & financial growth, digital direction, strategy, and the transformation of the company from a family run business to a professional corporate firm. He has approximately 22 years of work experience, out of which, he has around 15 years of experience in the Media and Entertainment Industry. After a successful stint in the financial sector, he joined Shemaroo. Hiren is an industry thought leader and brings a fresh perspective to the M&E space in India.
Jai Maroo - Director - He has experience in the technology industry in USA and Singapore and approximately 15 years of experience in the Media and Entertainment industry. With a clear focus on strengthening the organization for the next phase of growth, he focuses on catalyzing transformation by building a robust organization that is increasingly capable of taking on the growth ambition that the firm has scripted. He has worked with the leading firms in the technology industry at USA and Singapore.
Kranti Gada - Chief Operating Officer - Kranti heads the revenue function of the company to drive extensive and sustainable growth. She was instrumental in incubating the company’s expansion into the DTH segment. She is also responsible for digital media, DTH and international business verticals. She pioneered and set-up the company’s mobile business and played a key role in the company’s early adoption of digital platforms. Kranti joined Shemaroo in 2006 after a successful stint in the FMCG industry in the field of marketing at PepsiCo.
8
Our Independent Board
Gnanesh Gala - Independent Director - He has around 35 years of experience in the Educational Publishing Industry. He was the President (Finance) of Navneet Publications (India) Limited for more than 21 years and presently the Managing Director of the said company.
Dr. (CA) Reeta Bharat Shah - Independent Director - She has over 30 years of experience in the field of education and administration in various capacities. DR. CA Reeta is a Ph.D. from IIT Bombay, a member of Institute of Chartered Accountants of India, Masters in Philosophy, Masters in Commerce, Masters in Business Administration (HRM), Bachelors of Law (General) and Bachelors of Commerce (Hons.). DR. CA Reeta is presently the Head of Department (Accountancy) at SIES College of Commerce & Economics.
Vasanji Mamania - Independent Director - He has around 56 years of experience in various industrial sectors including Film Processing, Civil Constructions, Heavy Engineering and Non-ferrous Metals. He was the Co-Founder of Adlabs. Mr. Mamania has handled responsibilities ranging from operations to financial planning and engineering inputs in design and processes.
Shashidhar Sinha - Independent Director - He is a B.Tech from IIT Kanpur and is a post graduate from IIM Bangalore, India. He has over 33 years of experience in media and advertising. He is presently the CEO of Lodestar UM India. He is actively involved and drives key industry bodies like the Advertising Standards Council of India, AAAI’s – Indian Broadcasting Federation joint body on industry practices, Audit Bureau of Circulation and the Joint Industry Body set up to monitor TV measurement.
Kirit Gala - Independent Director - He has completed his Masters in Business Administration and Mechanical Engineering from Mumbai University and has also completed his doctoral research in marketing at Tennessee, U.S.A. He has around 28 years of business experience. Mr. Gala is the Managing Director of Gala Precision Engineering Private Limited. He is better known as a “Marketing wizard” and has already been featured in various leading Business magazines for his expertise.
9
Key Strengths
Established Brand Name
• Brand in existence for over 55 years
•
The “Shemaroo” brand has high consumer recall and media visibility
Diversified Distribution Platforms
Vast, Diverse and Growing Content Library
• Presence across television, digital media and other media
• Distribution reach is a key advantage, as company is able to
offer “anytime anywhere” entertainment to consumers
Strong Industry Relationships
• Managed to create, maintain and build goodwill
in the
industry
• Repeated transactions with known names – STAR, SONY, Industries, Nadiadwala
Tips
Viacom 18, R.K. Studios, Grandson etc.
• Most Bollywood services that require content would have at
least some content provided by Shemaroo
• Content Library of more than 3,700 titles spanning Bollywood, Devotional, Regional, Comedy, Kids, Health & Lifestyle, etc.
• Perpetual Rights of 1,037 films, of which 471 are Hindi.
Experienced Directors and Management Team
• MD with over 40 years of business experience
•
In-depth understanding of the film industry, deep insight on technology and market trends
De-risked Business Model
•
Large number of titles
• Width and depth of distribution platforms
• Multiple genres and types of content
10
BUSINESS MODEL
11
Shemaroo’s Role In A Movie Lifecycle
• Shemaroo typically participates in the second and subsequent cycles of film monetisation
•
•
These subsequent cycles of film monetisation have been typically growing due to various factors like increasing advertisement spends, digitisation etc.
There is a lower risk in these cycles due to visibility of performance of movie during first cycle of launch
• Shemaroo decides on the cost of the content after it is confident of achieving the desired ROI at portfolio level
• Shemaroo then distributes this content over different platforms like Broadcasting channels & Digital Media platforms
e u n e v e R
Television and Theatrical, release generate overseas ~90-95% of the revenues in the first cycle of movie launch, where Shemaroo is not typically present.
Shemaroo is present in the ancillary revenue streams like digital Media, Home Video & In-Flight movie distribution, which contribute towards the remaining 5 - 10% of the revenues
First Cycle
Second Cycle
Third Cycle
Subsequent Cycles
12
The Business Model
Complete Ownership Rights
In-House Creation
Limited Ownership Rights
Perpetual Rights – Complete ownership rights for distribution across all geographies, platforms, and perpetual periods
Aggregate Rights - Rights limited by either period of usage, platforms, geography or a combination thereof
Content Library
• Hindi Films • Regional • Devotional • Kids
• Comedy • Music • Special Interest Content • Other Content
Monetisation Platforms
Digital Media
Traditional Media
Mobile | Internet | OTT | Others
Airtel | YuppTv | YouTube | Vuclip | Vodafone | Google Play Store | Hotstar |Reliance Jio | Apple iTunes
Sony Max, UTV Movies, Zee Cinema, TV Today, Viacom 18, Cartoon Network, Star Gold, Doordarshan, Hathway, 9X Jalwa, & Pictures, Mastii, Times Now, Crossword, Planet M, etc.
Satellite | Terrestrial | Cable | DTH
In-Flight | Home Video | Overseas, etc.
Television Syndication
Others
13
Our Content Library
Content Library as on May 15th, 2018:
Sr. No.
1.
2.
3.
Types of Content
Perpetual Titles
Aggregated Titles
Total Number of Titles
Hindi films
Regional Titles
Special Interest content
TOTAL
471
511
55
1,037
1,454
1,017
243
2,714
1,925
1,528
298
3,751
14
Content Selection Criteria
Shemaroo uses proprietary tools and considers various other factors for content valuation as shown below. The company purchases forward rights to movies and decides on the cost of the content after it is sure to achieve a desired return on investment at a portfolio level.
Sr. No.
Content Selection Criteria
Sr. No.
Content Selection Criteria
1.
2.
3.
Viewership rating
Box Office Records
Cast
4.
Awards
ROMANCE ACTION COMEDY DRAMA
5.
6.
7.
8.
Production House Track Record
Genres
Reviews
Comparable Movie Valuation
15
Shemaroo’s Role In The Value Chain
Fragmented Production Houses
One of the largest Content Houses
Monetisation Platforms
There are many production houses/ content owners in India with smaller content lot
Smaller content lot is difficult to monetize effectively
This fragmented market necessitates the need of a content aggregator and distributor like Shemaroo
Creates Value Increasing the life of the movie and creating value for all the stakeholders
Requires unbundled and re-bundled content with customisation
Need a consistent flow of content
Requires clean and litigation free titles
Convenient and Hassle Free For both Producers and Platforms, it is convenient one aggregator than multiple players
to rather
deal with
Large Content Ownership Large content ownership gives Shemaroo an advantage for unbundling and re-bundling of content
Premium Quality Offers quality content to platforms by adhering to robust selection criteria
Legally Clean Titles Offering undisputed titles
16
DISTRIBUTION PLATFORMS
17
Media & Entertainment Industry
Media and Entertainment Industry is expected to reach INR 2.66 Tn by FY23
Media and Entertainment Industry growth (INR Bn)
2,101
263
199
2,368
340
214
2,660
435
229
959
1,067
1,180
1,634
155 172
746
1,862
203
185
855
948
33 126
434
FY14
1,055
47 127
490
FY15
1,182
65 137
552
FY16
1,295
86 145
595
FY17
1,436
116 159
652
FY18
FY19E
FY20E
FY21E
FY22E
FY23E
TV
Films
Digital Advertising
Animation and VFX
Gaming
OOH
Radio
Music
Strong and consistent economic growth fueled by a rise in consumption and growth in digitisation has boded well for the Indian Media and Entertainment industry which has grown at a CAGR of ~11% over FY14-FY18 to reach INR 1,436 Bn.
However, in recent years, it faced some head winds due to demonetisation and teething issues with GST roll out.
The industry is now well on the road to recovery, and aided by a buoyant Indian economy, strong domestic (particularly rural) demand and growing digital access and consumption, the sector is expected to grow at a CAGR of 13.1% over the next five years to reach INR 2,660 Bn by FY23.
Source: KPMG’s Report - “The walls fall down”
18 Digital Media Industry
Digital Advertising revenues grew by 35% to reach INR 116.3 Bn in FY18 over FY17. It is expected to grow at a 30.2% CAGR over the period FY18-FY23 to reach INR 435 Bn.
Digital Advertisement Spend (INR Bn)
Digital Subscriptions (audio and video) grew at 50% in FY17 to reach INR 3.9 Bn in FY17 over FY16 and expected to reach INR 20.1 Bn by FY20. The video subscription ecosystem has evolved over the past years and now has over 30 OTT players in India.
Highlights
Advancements in digital
increasing penetration from non-urban areas, cheaper data and high adoption of mobile phones has contributed to growth in digital advertising.
infrastructure,
The video watching user base is expected to increase from ~20% of
the wireless subscribers in India in 2016 to ~40% by 2020.
Videos are expected to contribute around ~77% of the mobile data
435
340
263
203
155
116
86
65
47
33
traffic by 2022 from ~50% in 2017.
FY14
FY15
FY16
FY17
FY18 FY19E FY20E FY21E FY22E FY23E
The consumption of video content on various OTT has increased
significantly over the past 18 -24 months.
In 2017, 15% of the total video consumption in India took place on OTT platforms with the remaining 85% share on cable and DTH platforms.
SOURCE: KPMG’s Report - “The walls fall down”, EY-FICCI’s Report - “Re-imagining India’s M&E Sector”
Digital Advertisment Spend (INR Bn)
19 Digital Potential
Rising Internet users (Mn)
Increasing share of mobile internet consumption for video in India
829
429
400
481
186
295
2017
2021E
Urban
Rural
sector
especially
is poised to The digital first time witness the entrance of internet from users smaller towns and rural areas. Rural Internet users are expected to grow from 38% to 52% of total base from 2017 to 2021. This will have a significant impact on the type and language of content that will be offered.
2017
Video 50%
Web and other data 38%
Web and other data 15%
Audio 10%
File Sharing 2%
2022E
Video 76%
File Sharing 3%
Audio 6%
Increase in online video subscribers
Of the total time spent on digital videos, Indian consumers spend 93% of the time on Hindi (63%) and Regional content (30%)
160
2016
250
500
2017 Online Video Subscribers (Mn)
2020E
SOURCE: KPMG’s Report - “The walls fall down”, EY-FICCI’s Report - “Re-imagining India’s M&E Sector”
YouTube and Facebook account for around 60%-70% of the total online video consumption in India and YouTube is the largest digital video platform in the country with 225 Mn Monthly Active Users (MAUs)
20
Strengthening Digital Infrastructure
Following the launch of 4G services by Reliance Jio in Sep-2016 at disruptive prices, it resulted in commoditisation of voice services with realisations per minute dropping by more than 30% post Q2 FY17. Average outgo for 1GB data reduced from ~INR 200 to ~INR 20 in Q3 FY18.
Increase in data consumption expected due to cheaper data and handsets.
3.9
2017
18
2023E
GB of data consumption per smartphone
India is the second largest smartphone market in the world. Number of internet enabled smartphone users crossed 300 Mn in 2016 and would reach 650 – 700 Mn by 2020.
Broadband subscriber base (Mn) on Dec 31, 2017
Wired 18
Fixed Wireless 0.4
Wireless 345
India is expected to be the 2nd largest online video viewing audience in the world by FY20. 30% of the app time spent by on Indians entertainment.
is
SOURCE: KPMG’s Report - “The walls fall down”, EY-FICCI’s Report - “Re-imagining India’s M&E Sector”, Kalaari’s Report – “IndiaTrends2018-Trends shaping Digital India Internet”
21
Strategic Drivers for Growth in Digital Media
Broadband Infrastructure
•
Increasing reach of in data 4G & fall prices to enhance the consumption of videos
• The ‘Digital
India’ initiative from the Government
Technology
• Growing
availability of sub INR 5,000 smart phones
•
Increased penetration of Hybrid connected TV STBs, Smart TVs etc.
Rise of OTT
•
•
Increase number destinations online watching
in the of OTT for video
Surge in the width and of depth content offered for Indian consumers
Rapid digital adoption in non-metros
• Next wave of internet video users will come from the non-metros driving video consumption
• 75% of new internet users are expected to consume data in local languages by 2020
22
Shemaroo In Digital Media
Shemaroo was one of the early Indian media companies to syndicate its library in the high growth digital media platforms, thereby gaining early mover advantage
Digital Media Revenue (INR Mn)
1,718
1,305
•
•
The company caters to all types of revenue models like subscription, pay per transaction, advertisement supported (free to consumer) etc. Due to its large library ownership Shemaroo has the ability to slice and dice content and package it in different ways that are more suited for the digital media platforms
373
246
923
635
Digital Media Presence
FY14
FY15
FY16
FY17
FY18
FY19
Internet and OTT
• Shemaroo has agreements with various internet video platforms like YouTube, Hotstar, Reliance Jio, Apple Play, iTunes, Google YuppTV, etc.
Mobile Value Added services (MVAS) / Mobile Internet
• The company has agreements with major
telecom operators, namely Airtel, Vodafone, Idea, etc.
• Shemaroo distributes imagery, videos, full songs, live streaming etc. under MVAS through both operator branded portals as well as its own branded portals
Internet
YouTube
MVAS
Airtel
Hotstar
Vodafone
23
YouTube
Shemaroo’s content on YouTube gets over 1.2 Bn views a month at an average of more than 40 Mn views per day.
YouTube Views Growth
•
•
•
Shemaroo is among the most viewed channel partners for YouTube in India and has more than 50 channels of its own on YouTube The company’s flagship channel ‘ShemarooEnt‘ crossed 15 Mn subscribers and ‘FilmiGaane’ crossed 21 Mn subscribers on YouTube in March 2019. The high viewership, content connect and viewer stickiness has translated into higher revenues for Shemaroo over the years
Revenue Model for You Tube •
Shemaroo gets revenue from the advertisements shown on its channel on YouTube, in many ways, for example:
Banner Ads • Pre roll ads • • Mid roll ads etc.
•
Shemaroo gets a revenue share from the advertisement revenue that Youtube makes from Shemaroo channels
Some of Shemaroo’ s Popular brands on YouTube
24 TV Industry Performance and Projection
TV Industry Performance (INR Bn)
594
243
351
660
267
393
734
304
430
862
368
494
2016
2017
2018E
Distribution Advertising
2020E Total
*Gross of taxes
Broadcasters’ Revenue (INR Bn)
333
90
243
366
99
267
413
109
304
452
117
335
493
125
368
2016
2017
2018
2019
2020
Advertising
Subscription
SOURCE: EY-FICCI’s Report - “Re-imagining India’s M&E Sector”
TV Industry grew from INR 594 Bn to INR 660 Bn in 2017, a growth of 11.2%. It is expected to reach INR 862 Bn by 2020, at a CAGR of 9.8%.
Advertisement
the industry revenues today, it would grow to 43% of the total revenues by 2020.
revenues contributes
to 41% of
Ad revenues were driven by increase in number of
channels launched, rise in advertising rates.
Broadcaster’s overall revenue increased from INR 333 Bn in 2016 to INR 366 Bn in 2017. It is expected to reach INR 493 Bn by 2020, at a CAGR of 10.3%.
Broadcaster’s subscription revenue growth was driven
long term contracts with escalation clauses
by: • • digitisation of TV •
increased transparency contributing higher revenue share
25 Television Industry
Industry Dynamics
• Television syndication is the sale of content
rights to
broadcasters
• The Indian television broadcasting segment currently has more than six genres and Movies as a genre is second in terms of viewership after General Entertainment Channels
• The standard practice of the Indian television industry is to
purchase forward rights for a period of 5 to 7 years
• There is a one time fixed fee payment made at the the
for exclusive license to broadcast
network level content for multiple telecasts
Under penetrated Rural India (TV) (Mn Homes)
99
52%
84
87%
Urban
Rural
No. of Households
Penetration
On any given day, an average of 8 movies are shown on a Movie channel. Even considering the repeat telecast of these movies, the broadcaster would need access to a significantly large movie library
Although the No. of households for TV viewership in rural area is 17% more than urban area, the penetration there is as low as 52%.
SOURCE: BARC India’s Report – “The Changing face of TV in India”, KPMG’s Report - “The walls fall down”
26
Shemaroo in Traditional Media
Traditional Media Includes – Television Syndication, Overseas Distribution and Others
Traditional Media Revenue (INR Mn)
Television Syndication
• Shemaroo has a diverse content library which it syndicates rights to various Satellite
Channels, Cable & Terrestrial Networks
• Considering the vast and diverse library of Shemaroo, it can be easily assumed that most broadcasting channels would have some content syndicated from Shemaroo at sometime or the other
Subscription Based Services
•
In partnership with major DTH and Cable operators, Shemaroo operates subscription- based, ad-free content services across various genres like Movies, Devotion, Comedy and Regional
3,113
3,332
3,960
3,586
2,861
2,387
FY14
FY15
FY16
FY17
FY18
FY19
TV Syndication Platforms
• Predominantly consists of Hindi films
Satellite Television
• This includes Movie Channels, Kids Channels, Music Channels, News Channels etc.
• Enter into exclusive agreements for a film or package of films with a particular group of movie channels for a specified period
of time
Terrestrial Television
• The company also licenses content for broadcasting on terrestrial television network
Cable Television
• Revenue stream, wherein an increasing number of cable operators are licensing rights of Shemaroo’s content
27 Increasing Global Footprints
•
•
Indians form one of the highest diaspora population in the world, who have the willingness to pay for content and yet have limited options for this content
The company caters to a score of audiences in international markets through its relationships with many leading international traditional and digital platforms across Geographies like USA, Europe, South East Asia, Africa, Australia, UAE etc.
• On the back of Shemaroo’s ever
the company plans to significantly scale up presence internationally and build significant capacities and resources internally to cater to the growing demand for Indian content amongst the diaspora as well as the non-diaspora population
increasing content
library,
• With a focus on the North American market,
the company has
opened an office in USA
28
Other Traditional Media Platforms
Home Entertainment
• The Home Entertainment business has helped Shemaroo to garner the legacy of becoming a nationwide well known and accepted brand
• Has successfully migrated from one content format to another (Video
VHS to VCD to DVD to Blu-Ray)
Over the last few years the trend in the Home Entertainment industry has been a migration from physical to digital formats which is how the company is also positioning itself
In-flight Entertainment
• Shemaroo distributes its content to more than 50 airlines globally like Emirates, Qatar Airways, Singapore Airlines, Lufthansa, Jet Airways amongst others
29
OUR STRATEGY
30 Road Ahead
“Shemaroo’s multifold growth over the years has been a result of its excellent relationships with its partners in the media industry. Shemaroo will continue to strengthen its position in the industry by providing unparalleled value addition to all stakeholders”
Riding on the Digital Wave
With a fundamental shift happening in how consumers consume the content, Shemaroo aims to be at the forefront of digital and technological innovations
Strengthening IPs and Entering new domains
In line with the fast growing appetite of multiple genres of content by consumers, Shemaroo aims to further strengthen its Bollywood and non-Bollywood IPs like regional, devotion, kids, etc.
Expanding our footprint globally
There is an increasing affinity towards Indian content globally. Shemaroo aims to significantly scale up its presence internationally serving diaspora as well as non diaspora audience to tap this growing demand
Increasing B2C presence
Shemaroo aims to significantly increase its B2C presence in the next few years through innovative product offerings meeting the changing needs of the consumers
31 Strategic Overview
Scaling up the Content Library driven by RoI
• Acquiring perpetual rights, as well as, to monetise these over a maximum number of distribution platforms
• Acquiring Television Broadcast rights and Digital Media Rights
Enhancing Monetisation of Content Library through Existing and Emerging Media Platforms
• Broad base revenue streams by increasing distribution of content through existing and emerging media avenues
Enhancing Revenue Predictability through Strategically Packaged Sales
• Vast content library allows to aggregate and package several titles together instead of monetising each title on an individual basis
Creating a sustainable competitive advantage via Marketing Strategy and moving up the Value Chain
Marketing Strategy is based on:
• Leveraging industry relationships
• Monitoring distribution platforms
• Tracking varying consumer preferences
• Adapting content offering
• Enhancing visibility, recall of content titles
Optimising Content Monetisation across its Life-Cycle
• Maximising the revenue potential of content across its life cycle
•
In view of different consumption patterns, reorganising the content for distribution
32
FINANCIAL OVERVIEW
33
Consolidated Income Statement (Ind-As)
Particulars (INR Mn.)
Revenue from Operations
Other Income
Total Revenue
Total Expenses
EBITDA
EBITDA Margin (%)
Depreciation
Finance Cost
PBT
Tax
PAT
Share of profit/ (loss) in associate company
PAT after adjustments
PAT Margin (%)
Comprehensive Income
Total Profit including Comprehensive Income (Net of tax)
FY14
2,646
13
2,659
2,003
657
FY15
3,234
13
3,247
2,366
881
FY16
3,751
16
3,767
2,675
1,092
FY17*
4,255
30
4,285
2,980
1,305
FY18*
FY19*
4,891
12
4,903
3,465
1,438
5,678
18
5,696
4,100
1,596
24.71%
27.13%
28.99%
30.46%
29.33%
28.01%
30
192
435
165
270
1
272
37
212
632
222
410
(1)
409
37
228
827
307
520
1
521
43
324
938
342
596
18
614
51
307
56
256
1,080
1,284
367
713
(1)
712
457
827
3
830
10.23%
12.60%
13.89%
14.33%
14.52%
14.57%
-
272
-
409
-
521
-
614
3
715
3
833
30.52
Diluted EPS (INR) (not annualised)
13.68
17.35
19.18
22.60
26.18
* As per Ind-AS
34 Consolidated Balance Sheet (Ind-As)
Equity and Liabilities (INR Mn)
FY18
FY19
Assets (INR Mn)
FY18
FY19
Shareholders Fund
Share Capital
Other Equity
Total Equity
Non controlling interest
Non Current Liabilities
Long Term borrowings
Deferred tax liabilities (Net)
Long tem provisions
Total Non-Current Liabilities
Current Liabilities
Short Term Borrowings
Trades payables
Other Financial Liabilities
Other Current Liabilities
Short Term Provisions
Current Tax Liabilities (Net)
Total Current Liabilities
Total
272
4,662
4,934
(36)
21
36
16
73
Non Current Assets
272
Fixed Assets
5,445
5,717
Property, Plant & Equipment
Intangible assets
(42)
Investments
Long Term Loan and Advances
Other Financial Assets
Other Non Current Assets
Total Non-Current Assets
4
34
32
70
1,858
1,969
Inventories
Current Assets
181
135
28
15
125
2,342
7,313
298
Trade Receivables
63
68
8
Cash and cash equivalents
Short Term loan and advances
Other Financial Assets
151
Other Current Assets
2,557
8,302
Total Current Assets
Total
323
10
67
-
3
31
434
5,297
1,406
13
4
-
159
6,879
7,313
306
10
65
1
3
58
443
6,027
1,590
16
6
8
212
7,859
8,302
34
35
Historical Consolidated Financial Charts
Total Income* (INR Mn)
5 Year CAGR 16.45%
5,696
4,903
4,285
3,767
3,247
2,659
FY14
FY15
FY16
FY17
FY18
FY19
Net Worth (INR Mn) and ROCE (%)
5 Year CAGR 26.79%
18.60%
19.60% 19.20%
18.10%
3,174
3,649
4,232
1,745
20.31%
20.13%
5,717
4,932
23.00%
20.00%
17.00%
14.00%
11.00%
8.00%
5.00%
7,000
5,250
3,500
1,750
-
EBITDA (INR Mn) and EBITDA Margin (%)
24.8%
27.1%
5 Year CAGR 19.42%
28.9%
30.5%
29.3%
1,305
1,438
28.0%
1,596
1,092
881
657
FY14
FY15
FY16
FY17
FY18
FY19
PAT (INR Mn) and EPS
5 Year CAGR 25.00%
22.60
614
17.35
19.18
521
409
30.52
830
26.18
712
13.68
272
2,000
1,600
1,200
800
400
-
900
600
300
-
FY14
FY15
FY16
FY17
FY18
FY19
FY14
FY15
FY16
FY17
FY18
FY19
* Includes other Income Note: FY17 to FY19 numbers are as per IND-As
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
31
26
21
16
11
6
1
-4
35
36 RIGHTS ACCOUNTING POLICY – CHARGE TO P&L
Aggregated Rights
(<10 years)
Long Term Rights (>=10 years)
Specific
Rights
Bundled Rights (Satellite + Digital Rights)
First 5 years - 65% in year of sale
Next 5 years – 35% in year of sale
Satellite, overseas, etc. - 100% in year of sale
Digital rights
Satellite rights - 85% in year of sale
Digital rights - 15% over 5 years
Satellite rights - 85% in year of sale
Digital rights - 15% over 5 years
Catalog – equally over 60 months
New Titles – 70% in first year & balance over 4 years
36
37 Capital Market
20%
10%
0%
-10%
-20%
-30%
-40%
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
SHEMAROO
SENSEX
Price Data (As of 31st March, 2019)
Face Value
Market Price
52 Week H/L
Market Cap (INR Mn)
Equity Shares Outstanding (Mn)
1 Year Avg. Trading Volume ('000)
INR
10
400.0
560.0/325.0
10,872.9
27.18
12.03
Share Holding Pattern as on 31st March, 2019
Public 15.56%
FII 18.41%
Promoters 65.82%
DII 0.21%
38 Disclaimer
Shemaroo Entertainment Limited
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Shemaroo Entertainment Limited (“Company” or “Shemaroo”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.
This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.
Valorem Advisors Disclaimer:
Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.
For further information please contact our Investor Relations Representative:
Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: shemaroo@valoremadvisors.com Investor Kit Link: www.valoremadvisors.com/shemaroo
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